Bank of America charges foreign transaction fees on most accounts and cards

Bank of America adds a foreign transaction fee of 3% to most debit card and credit card purchases made outside the United States. This fee is charged on top of the purchase price and applies whether you're using an ATM, swiping at a store, or paying online for something shipped from abroad.

The 3% fee applies to the transaction amount itself. If you withdraw $100 USD equivalent from an ATM in London, you pay $3. If you buy €50 worth of groceries in Paris, Bank of America converts that to dollars, then adds 3% to the converted amount.

Some Bank of America accounts and cards have different fee structures or exemptions. Checking accounts, savings accounts, credit cards, and debit cards each have their own rules, and a few specialty products waive the fee entirely.

Key Takeaways

  • Bank of America's standard foreign transaction fee is 3% on debit and credit card purchases outside the US, charged on top of the purchase amount.
  • The fee applies to ATM withdrawals, in-store purchases, and online transactions with foreign merchants or currency conversions.
  • Bank of America Visa Signature credit cards and some premium checking accounts do not charge the 3% fee.
  • You can avoid the fee by using a different card or bank while traveling, or by withdrawing cash in the US before you leave.
  • Currency conversion rates used by Bank of America are set by Visa or Mastercard, not by the bank, so the exchange rate itself is not negotiable.

Which Bank of America products charge the 3% fee

Bank of America's standard debit cards and most credit cards charge 3% on foreign transactions. This includes the Bank of America Cash Rewards card, the Bank of America Travel Rewards card, and most other consumer credit cards issued by the bank.

Debit cards tied to checking and savings accounts also charge 3% when used outside the US. This applies whether you're making a purchase or withdrawing cash from an ATM.

The fee is charged by Bank of America itself, separate from any fee your ATM network or the foreign bank might charge. If you use an out-of-network ATM abroad, you may pay additional fees on top of the 3% foreign transaction fee.

Bank of America products that waive the foreign transaction fee

Bank of America Visa Signature credit cards do not charge the 3% foreign transaction fee. This includes cards like the Bank of America Premium Rewards card and the Bank of America Unlimited Cash Rewards card (Visa Signature version). You can check whether your card carries the Visa Signature designation by looking at the card itself or logging into your account online.

Some Bank of America premium checking accounts, such as the Preferred Rewards program at higher tiers, may offer fee waivers or reimbursements for foreign transaction fees. The specifics depend on your account tier and the terms in effect when you opened the account. Contact Bank of America directly to confirm whether your checking account includes this benefit.

Debit cards do not have a Visa Signature equivalent, so no Bank of America debit card waives the 3% fee. If you want to avoid the fee on cash withdrawals, you will need to use a credit card at an ATM (which may carry its own ATM fee) or withdraw cash before leaving the US.

How the 3% fee is calculated and when it's charged

The 3% fee is calculated on the transaction amount after currency conversion. When you make a purchase in a foreign currency, Visa or Mastercard converts it to US dollars using their exchange rate for that day. Bank of America then adds 3% to that converted amount and charges your account.

The fee appears as a separate line item on your statement, labeled as a foreign transaction fee or international transaction fee. It is charged at the time the transaction posts to your account, which may be one to three business days after you make the purchase.

If you make multiple purchases abroad on the same day, each one is charged the 3% fee separately. There is no daily cap or limit on how many times the fee can be charged.

Alternatives to paying Bank of America's foreign transaction fee

If you travel frequently or live abroad, using a different card or bank may cost less. Many online banks and credit card issuers charge no foreign transaction fee at all. Comparing your options before you travel can save hundreds of dollars per year if you spend a lot abroad.

Some travelers open a second checking account with a bank that waives foreign transaction fees and use that account's debit card while traveling. Others use a no-fee credit card from a different issuer for purchases and keep their Bank of America card for domestic use only.

If you are traveling for a short trip and do not want to open a new account, withdrawing US dollars before you leave and exchanging them at a local bank or ATM abroad may be cheaper than paying the 3% fee on every transaction. Compare the exchange rates and fees at your destination to see which method costs less.

How to check your Bank of America statement for foreign transaction fees

Log into your Bank of America online account and view your recent transactions. Foreign transaction fees appear as separate charges, usually labeled "Foreign Transaction Fee" or "International Transaction Fee." They are listed near the purchase that triggered them.

On your monthly statement, add up all the foreign transaction fees to see how much you paid that month. If you travel frequently, this total can help you decide whether switching to a no-fee card or bank is worth the effort.

If you see a foreign transaction fee on a purchase you made in the US, contact Bank of America to report it. This can happen if a US merchant processes the transaction through a foreign payment processor, though it is uncommon.

Currency conversion rates and who sets them

Bank of America does not set the currency conversion rates used for your transactions. Visa and Mastercard set the rates based on wholesale exchange rates at the time your transaction is processed. The bank applies the 3% fee on top of whatever rate Visa or Mastercard provides.

This means you cannot negotiate a better exchange rate with Bank of America. The rate is the same for all Bank of America customers using Visa or Mastercard on the same day. If you want a better exchange rate, you would need to use a different payment method, such as a local bank account or cash exchange at a currency exchange shop.

The exchange rate used may differ from the rate you see online or in the news. Visa and Mastercard rates are wholesale rates, which are better than retail rates offered to consumers at currency exchange shops, but they are not the same as the mid-market rate you might see on a financial website.

Frequently Asked Questions

Do I pay the 3% fee if I use my Bank of America card at a US company's foreign website?

No. If you buy from a US company's website and the transaction is processed in US dollars, Bank of America does not charge the foreign transaction fee. The fee only applies when the transaction is processed in a foreign currency or when the merchant is located outside the US and processes the transaction in their local currency.

What if I use my Bank of America card at an ATM outside the US?

You will be charged the 3% foreign transaction fee on the amount you withdraw, plus any ATM operator fee charged by the foreign bank or ATM network. Some ATMs charge $2 to $5 per withdrawal, so the total cost can add up quickly if you make multiple withdrawals.

Can Bank of America refund a foreign transaction fee if I dispute it?

Bank of America will not refund the fee as a matter of policy, since the fee is disclosed in the account terms. If you believe the fee was charged in error—for example, if you were charged twice for the same transaction—contact Bank of America to report it and request a review.

Does the 3% fee apply to balance transfers or wire transfers?

No. The 3% foreign transaction fee applies only to purchases and ATM withdrawals made with your debit or credit card. Balance transfers, wire transfers, and other banking services have their own fees, which are separate from the foreign transaction fee.

If I have a Bank of America Visa Signature card, do I pay any fees for foreign transactions?

Bank of America does not charge the 3% foreign transaction fee on Visa Signature cards. However, you may still pay fees charged by the ATM operator or foreign merchant if you use an out-of-network ATM or if the merchant charges a processing fee. Visa Signature benefits vary, so check your card's terms to see what other protections or benefits you have while traveling.